Economy: Alan Walters diary [money supply figures better than forecast; channel link][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS3/1/2
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	223
Themes:	Defence (Falklands), Employment, Industry, Monetary policy, Privatized & state industries, Public spending & borrowing

Tuesday 4th May 1982

Falklands War Cabinet

Money supply figures for April look far better than forecast. M1 down. M3 ≈ 0.5% growth.

- tell MS[Michael Scholar] that we should be thinking about reducing interest rates. £ above 90.

Clive [Clive Whitmore] not at all forthcoming about Cruiser sinking and Cabinet discussion - destroyers ran away from sinking cruiser, may have thought it had been an air attack - but they ought to have returned. Clive implied the cruiser was embarked on something sinister but said no more.

Cross channel link + Invergordon at E

PM wanted a briefing on cross Channel link but now there is no time. E alright decisions on Channel Link - no guarantee and no rail only. PM used my briefing note v. well. Only support for DH [David Howell] came from Hurd of FO - then only usual good European stuff. DH very weak and just accepted all the criticism.

George Younger persisted with Invergordon and got his £10m a year subsidy - declining. PJ [Patrick Jenkin] , NT [Norman Tebbit] etc. against, even Biffen himself - but Willie [William Whitelaw] came down in favor and so Heseltine, Walker etc. weighed in on GY’s side - a farce since it is really about employment yet we subsidise coal.

Sheffield sunk. PM got message at 6.00 in E.